On Thursday, Intel introduced new computer chips, including Gaudi3, a chip for generative AI software. Gaudi3 is set to launch next year and will compete with chips from Nvidia and AMD that power large AI models.
Big AI models, such as OpenAI’s ChatGPT, currently use Nvidia GPUs in the cloud. This has boosted Nvidia’s stock by nearly 230% this year. While Intel shares have risen by 68%. To challenge Nvidia’s dominance, companies like AMD and now Intel are introducing chips aimed at attracting AI companies.
On Thursday, Intel’s shares went up by 1%. While there were few details provided. Gaudi3 will compete with Nvidia’s H100 and AMD’s upcoming MI300X, expected to ship to customers in 2024. Intel has been working on Gaudi chips since 2019, following its acquisition of chip developer Habana Labs.
During a launch event in New York, Intel CEO Pat Gelsinger expressed excitement about generative AI, declaring it the star of 2023. He believes the AI PC will be a highlight in the coming year. Gelsinger also introduced the new Core Ultra processors on Thursday, emphasizing their role in AI applications.
Intel Core Ultra and new Xeon chips
Intel also introduced Core Ultra chips designed for Windows laptops and PCs, along with new fifth-generation Xeon server chips. Both include a specialized AI component called an NPU, aimed at accelerating the execution of AI programs.
This move indicates a trend among traditional processor manufacturers, including Intel’s competitors AMD and Qualcomm, to focus their product lines on AI models and highlight the potential for increased demand for their chips.
While the Core Ultra chips may not have the power to run a chatbot like ChatGPT without an internet connection, they can efficiently handle smaller tasks. For instance, Zoom utilizes these chips for its background-blurring feature. The chips are constructed using Intel’s 7-nanometer process, known for its improved power efficiency compared to earlier versions.
Despite this, the 7-nanometer chips demonstrate Intel CEO Gelsinger’s strategy to catch up with Taiwan Semiconductor Manufacturing Co. in chip manufacturing prowess by 2026. The Core Ultra chips also boast enhanced gaming capabilities, with added graphics power enabling programs like Adobe Premier to run more than 40% faster. The lineup was launched in laptops available in stores on Thursday.
Intel’s fifth-generation Xeon processors are designed to power servers used by large organizations, including cloud companies. Although pricing details were not shared, the previous Xeon processors were priced in the thousands of dollars range. These processors are often paired with Nvidia GPUs in systems used for training and deploying generative AI. Some systems even pair eight GPUs with one or two Xeon CPUs.
Intel highlighted that the latest Xeon processor is particularly well-suited for inferencing, the less power-intensive process of deploying an AI model, distinguishing it from the more power-hungry training process.
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